A new study has found that institutional investors
are increasingly considering putting their capital to work
through peer-to-peer lending platforms.
Marketplace lending, or peer-to-peer lending, connects investors with
individuals and small businesses requesting lines of credit on
online platforms. Platforms such as Lending Club, which went
public in 2014, act as intermediaries to link borrowers with
credit and run checks on their credit worthiness.
According to a survey by Richards Kibbe & Orbe and Wharton
FinTech, a growing number of hedge funds see this space having
potential for strong returns. But only 29% of survey
respondents said they had already made investments. Most are
waiting for the industry to build a longer track record and
create a secondary market to spur liquidity.